National Food Brand

The Big Picture

EXECUTIVE SUMMARY

The opportunity to fulfil the gap for home grown rice in Nigeria, the largest economy in Africa, offers a significant opportunity for investors. Ondo State gives their unreserved backing for the project and have awarded 5,400 hectares of suitable land for the project for 30 years. The team of experts have put together a detailed business and technical plan to ensure a sustainable and highly profitable business. 

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Marketing

Wems will create fully researched and funded rice brands for first mover advantage so that Wems Rice will be less susceptible to commodity volatility. However, while the brand is being developed Wems may have the luxury of a long-term contract to sell paddy at NGN113,500 per tonne to Lagos State Government and processed rice to already existing rice brands at NGN220,000 per tonne.

The project will enjoy profits of well over 35% with a 7 years projected total turnover of NGN25.2 billion and for a capitalization of NGN7.17 billion. With the completion of Phase 1 at the end of the 7th year, turnover will rise to NGN8.36 billion annually.

Investor Exit strategy

It is anticipated that exit will be by way of a trade sale to a company involved in food production, such as Cargill, BUA or Honeywell.